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10/14/2007 - Fed Chair Bernanke to update on economic outlook on Monday evening

Posted by FOREX.com's Weekly Strategy in October 12th 2007  
* Fed Chair Bernanke to update on economic outlook on Monday evening
* G7 unlikely to take action; speculative positioning to rule in advance of meeting
* US data continues to weigh against another Fed rate cut
* ECB speakers ratchet up the hawkish rhetoric
* US housing data (bad) begins in second half of next week

The USD finished the week a bit lower in US dollar index terms, but the real play in the currencies was a renewed push higher in the JPY-crosses, the 'carry trade,' as was suggested in last week's outlook. Commodities also pushed higher, but look set to finish below their highs for the week. In gold, I would note two attempts to surmount $750/oz spot, which have failed for the time being. I will continue to watch that level as near-term trigger to larger gains or for signs of a rejection/reversal. However, I am not expecting next week to be a major breakout week, due to the impending G7 meeting.  Full text »

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Filed under: Weekly Strategy